The budget is a pragmatic and forward looking balanced effort across the social spectrum. While the urban middle class gets some relief by way of an increase in income-tax exemption level, a slew of initiatives have also been announced to strengthen agri infrastructure and help people in rural areas.
The FM has nailed the crucial issue of infrastructure funding, which has plagued the country for several decades by announcing several measures to enhance capital inflow in Indian infrastructure. The decision to step up infrastructure funding via a vibrant debt market is a welcome step to resolve funding bottlenecks. A robust bond market will give much needed fillip to strengthen infrastructure funding.
The Indian government’s initiative to raise the domestic palm oil output to 300,000 metric tonnes per year by infusion of Rs 300 crore is welcome step and will help enhance local production of palm oil. A marginal increase on MAT for corporates and inclusion of SEZ developers under the MAT purview is not in the interest of India Inc, as SEZ were set up to sharpen competitive edge to the industry.
At the time of formulating SEZ Act. this was discussed in detail and it was decided not to levy MAT from SEZ developers and units in SEZ, this midway change has surprised many investors. The removal of excise duty on equipment for ultra mega power project will provide a relief to local suppliers. This measure could have been extended to new power generation units which employ environment friendly super critical technology.
The setting up an inter ministerial group for mining will help in arriving at an optimal and comprehensive decision and ensure faster and timely implementation of mining and mining associated industries like power and metal production.
Gautam Adani, Executive Chairman, Adani Group
